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Examines how small firms can maximise service quality to determine a competitive marketing advantage for their enterprise. Demonstrates how there is little in the conventional service quality literature to guide the small firm and that current models of service quality are most relevant to larger organisations. From the results of a two‐stage empirical study which focused on small engineering firms, a model of service quality is put forward which more truly reflects the circumstances of the smaller enterprise. Finally, the paper outlines the main considerations for the enterprise owner in developing a competitive advantage through service quality management.

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